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17 November 2022 – 07:00 CET The strategy delivers results – a strong quarter July – September 2022 Net sales in the quarter increased by 54 percent* to SEK 1,176 (766) million. Organic growth was 12 percent. EBITA increased by 29 percent to SEK 89 (69) million. EBITA margin amounted to SEK 7.6 (9.0) percent. […]]]>
17 November 2022 – 07:00 CET
The strategy delivers results – a strong quarter
July – September 2022
- Net sales in the quarter increased by 54 percent* to SEK 1,176 (766) million.
- Organic growth was 12 percent.
- EBITA increased by 29 percent to SEK 89 (69) million.
- EBITA margin amounted to SEK 7.6 (9.0) percent.
- Cash flow from operating activities amounted to SEK 53 (-13) million.
- Basic earnings per share were SEK 0.89 (0.58).
- Diluted earnings per share were SEK 0.88 (0.57).
* 50.5 percent, not including currency effects.
CEO comments
We continue delivering on our strategy of gathering the best entrepreneurs in our sector under one roof and are able to conclude that our growth during the year has been very strong, despite all the uncertainty in the world around us.
The compound annual growth rate (CAPR) over the last three years amounts to 31 percent and the corresponding growth of EBITA is 101 percent.
We continue to deliver
Revenue for the year has increased by 45 percent, of which 7 percent is organic, to SEK 3.2 (2.2) billion, both driven by the strong demand from our customers and more companies having joined the Group via acquisition. EBITA increased by 63 percent to SEK 242 (148) million and in conjunction with that, the EBITA margin increased by approximately one percentage point to 7.6 (6.7) percent. For 12-month rolling, the margin is 7.9 percent, which is in line with our financial target. Diluted earnings per share increased by 56 percent. Cash flow increased by 69 percent to SEK 216 (128) million.
Compared to the first half of the year, there was an even higher growth rate in the third quarter, yet with a slightly lower margin of 7.6 (9.0) percent. We have specific times in our customer agreements when indexing can take place, normally annually, and therefore there is a delay from the time costs have increased until the price is adjusted. Higher interest rates and rising inflation, signs of a weaker economy and an uncertain geopolitical situation are things that impact us negatively. In that context, we are pleased that the margin is still so strong, at 7.6 percent and we are optimistic about our performance in the next quarter.
Our order backlog remains strong at just over SEK 7 billion, most of which is contracts in the public sector.
New acquisitions strengthen our position in Sweden and Norway
We are continuously evaluating new potential acquisitions and are very selective in our process. We have a decentralized model that is proven to work, where companies retain their decision-making authority and responsibility, while helping to boost the size and cumulative knowledge of the group. We can see that our offering is attractive.
During the third quarter, we welcomed two new companies to the Group via the acquisition of Braathen Landskapsentreprenør AS in Norway, with annual sales of approximately NOK 300 million and Sorex Entreprenad AS in Sweden with annual sales of approximately SEK 70 million. Both companies are run by skilled entrepreneurs with excellent knowledge of the conditions in their local market. They also share our values, which is important to us in our selection of companies to acquire.
New market and more acquisitions after the end of the period
In October, Green Landscaping Group acquired UAB Stebule in Lithuania, which represents its first acquisition outside the Nordic region. The company has 330 employees and annual sales of approximately SEK 130 million. Our strategy in to increase our presence in more countries so that we can bring in the best entrepreneurs. We want to build local clusters of at least 3-4 companies so that it generates synergies.
Two additional companies were acquired after the end of the period: HK Sandnes in Norway with annual sales of approximately SEK 140 million and Taimisto Huutokoski in Finland with annual sales of approximately SEK 35 million. In total, the three companies contribute around SEK 300 million in annual sales, with good profitability.
A home for entrepreneurs
So far during the year, we have added a total of ten new companies to the Group in these countries: Sweden, Norway, Finland and Lithuania. As of the end of September, Green Landscaping Group had 44 operating subsidiaries.
Here at Green Landscaping Group, talented entrepreneurs are the foundation for our success and by serving as a catalyst for discussion and knowledge exchange, we create the prerequisites for all of us to improve. When new entrepreneurs join the Group, it facilitates even more knowledge sharing and makes us all stronger. Our aim is to be a home for the best entrepreneurs in our industry.
Leadership and cultural issues are important to us and clearly linked to profitability. We work methodically to inject the required expertise and set up the structure that is needed at any of our subsidiaries. We do this by getting the best entrepreneurs involved in the Group and via our dedicated LEAN team.
Despite all the uncertainty in the world around us, I’m happy to conclude that we continue to reap success with our strategy.
Presentation of the report:
Green Landscaping Group CEO Johan Nordström and CFO Carl-Fredrik Meijer will present the report in a teleconference/audiocast on 17 November at 11:00 CET. The presentation will be held in English.
Phone: SE: +46850558375
UK: +443333009265
US: +16467224904
Webcast: https://ir.financialhearings.com/green-landscaping-group-q3-2022
For more information:
Johan Nordstrom, CEO, Green Landscaping Group AB
+46 70 838 58 12, johan.nordstrom@glgroup.se
Carl-Fredrik Meijer, CFO & IR, Green Landscaping Group AB
+46 70 108 70 19, carl-fredrik.meijer@glgroup.se
Green Landscaping Group AB (publ) works with outdoor environments and infrastructure. Through subsidiaries, we offer the most comprehensive service portfolio on the market, aimed at making outdoor environments more sustainable and safe. Our business concept is to enhance the customer’s outdoor environment by offering services focused on high customer value, long-term sustainability, and quality. The Company has approximately 1,600 employees and sales amount to approximately SEK 3.2 billion. The Company’s shares are listed on Nasdaq Stockholm with the ticker GREEN. For more information visit www.glgroup.se.
This disclosure contains information that Green Landscaping is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 17-11-2022 07:00 CET.
https://news.cision.com/green-landscaping/r/green-landscaping-group-interim-report-january-september-2022,c3668390
https://mb.cision.com/Main/16824/3668390/1676458.pdf
https://mb.cision.com/Public/16824/3668390/9e829f388dd1fa0a.pdf
(c) 2022 decision. All rights reserved., source Press Releases – English
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19 August 2022 – 07:00 CEST Continued positive trend with stable profit margin and high growth April – June 2022 Total revenue during the quarter amounted to SEK 1,143 (794) million, which is an increase of 43.9 percent*. The adjusted organic growth was 5.4 percent**. EBITA amounted to SEK 92 (65) million. It corresponds to […]]]>
19 August 2022 – 07:00 CEST
Continued positive trend with stable profit margin and high growth
April – June 2022
- Total revenue during the quarter amounted to SEK 1,143 (794) million, which is an increase of 43.9 percent*.
- The adjusted organic growth was 5.4 percent**.
- EBITA amounted to SEK 92 (65) million. It corresponds to an increase of 40.9 percent.
- EBITA margin amounted to SEK 8.0 (8.2) percent.
- Cash flow from operating activities amounted to SEK 15 (104) million.
- Reported tax during the period amounted to SEK 19 (2) million.
- Basic earnings per share were SEK 0.81 (0.76).
- Diluted earnings per share were SEK 0.81 (0.74).
* 43.3 percent, not including currency effects.
** Adjusted for the discontinued operations in the Stockholm region. Unadjusted growth amounted to 3.4%.
CEO Johan Nordstrom comments on the quarter:
The company continues to have a positive trend, with robust growth in both sales and earnings during the second quarter of the year. Growth is stable and continuing from a new earnings level of around 8 percent, despite uncertainty in the surrounding world having to do with inflation, rising prices, logistics challenges, energy crises and the war in Ukraine.
The company has made good progress during the last three years, growing more than 30 percent annually, with a simultaneous increase in profitability (EBITA margin) of more than 6 percentage points to just over 8 percent. We have a record-high order backlog of SEK 6.7 billion. Focus on the public sector and green infrastructure offers us good prerequisites for a favorable performance in periods of both expansion and contraction across an economic cycle.
Continued strong growth in sales and earnings
Revenue for the second quarter increased by 44 percent to SEK 1,143 (794) million and EBITA by a corresponding 41 percent to SEK 92 (65) million. EBITA margin amounted to SEK 8.0 (8.2) percent. The strong growth is in part attributable to profitable companies that were acquired, along with positive development in our existing companies. The adjusted organic sales growth was 5.4 percent for the second quarter, which is the stable level that we strive to achieve.
Basic earnings per share were SEK 0.81 (0.76) million and the cash flow amounted to SEK 15 (104) million. The difference in cash flow is mainly due to how the payment days are in the month and an effect of an increased share of project activities from acquired companies.
The performance was once again strong and exceeded or was in line with the financial targets. Sales growth for the most recent 12-month period was 40 percent, which exceeds our target of 10 percent. The EBITA margin was 8.1 percent compared to the target of 8.0 percent. The gearing ratio, measured as interest bearing debt/EBITDA pro forma was 2.4 times, compared to the target of it not exceeding 2.5 times.
Long-term customer relationships and multi-year contracts, primarily in the public sector, create stability and predictability. We have noticed that prices have risen for materials and supplies as well as transports and have gradually factored this into our tendering processes, albeit with a bit of a delay, which affects the margin somewhat negatively. Our companies are run by local entrepreneurs who are skilled at adapting the business based on the prevailing circumstances. Overall, it provides robustness and security in these times of greater uncertainty.
Additional acquisitions strengthen the company’s position in the Norwegian market
We strengthened our position in the Norwegian market during the second quarter of the year via the acquisition of Aktiv Veidrift AS. It is a highly reputable company with annual sales of approximately NOK 240 million.
We are continuously working to identify well-run, profitable companies that would be a good fit with the Group and have noticed that there is much interest in our offering. Becoming part of a larger group, while retaining independence and nurturing the local, entrepreneurial spirit is both attractive and a success factor for us. One important prerequisite for carrying out an acquisition is that the new company’s culture matches our own in a way that will facilitate good collaboration going forward.
Our strategy is founded on the power of local entrepreneursship
Since the corresponding quarter in 2021, we have added nine companies and the Group now consists of 42 independent subsidiaries.
We work methodically to maintain and spread expertise and best practice, while actively supporting and developing our companies wherever the need exists. The higher level of professionalism that occurs adds value to the companies belonging to the Group.
There has been a distinct upgrade of leadership and business skills in the company in recent years. As new and successful companies have entered the group with good profitability, the demands on existing companies have increased and the limit of what is possible has been raised significantly. The visible result of the increased quality of the leadership is the growth and the upward trend of the profitability margin. It is fantastic to see how the culture in the company is developing, which creates both higher job satisfaction and greater self-confidence. Simply put, a winning company culture.
It is very satisfying to deliver yet another strong quarter. The company’s strategy is clearly successful and our goal-oriented pursuits are paying off. It is also reassuring to see just how robust and resilient the company is, despite all the uncertainty in the world around us.
Presentation of the report:
Green Landscaping Group’s CEO Johan Nordström and CFO Carl-Fredrik Meijer will present the report in a teleconference/audiocast on 19 August at 10:00 CEST. The presentation will be held in English.
SE: +46 8 505 163 86
UK: +44 20 3198 4884
US: +1 412 317 6300
PIN code for all above numbers: 5164427#
Webcast: https://tv.streamfabriken.com/green-landscaping-group-q2-2022
This disclosure contains information that Green Landscaping is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 19-08-2022 07:00 CET.
For more information:
Johan Nordstrom, CEO, Green Landscaping Group AB
+46 70 838 58 12, johan.nordstrom@glgroup.se
Carl-Fredrik Meijer, CFO & IR, Green Landscaping Group AB
+46 70 108 70 19, carl-fredrik.meijer@glgroup.se
Green Landscaping Group AB (publ) works with outdoor environments and infrastructure. Through subsidiaries, we offer the most comprehensive service portfolio on the market, aimed at making outdoor environments more sustainable and safe. Our business concept is to enhance the customer’s outdoor environment by offering services focused on high customer value, long-term sustainability, and quality. The Company has approximately 1,600 employees and sales amount to approximately SEK 3.2 billion. The Company’s shares are listed on Nasdaq Stockholm with the ticker GREEN. For more information visit www.glgroup.se.
https://news.cision.com/green-landscaping/r/green-landscaping-group-interim-report-january-june-2022,c3616404
https://mb.cision.com/Main/16824/3616404/1616420.pdf
https://mb.cision.com/Public/16824/3616404/adb793f973799899.pdf
(c) 2022 decision. All rights reserved., source Press Releases – English
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